New laws to protect consumers from unfair contracts are being fast-tracked to be in place by 2010.
Consumer Affairs Minister Chris Bowen says the laws are designed to provide greater power to consumers and consumer groups to legally challenge unfair contracts terms.
The new laws apply to standard form contracts and are modelled on existing Victorian Consumer Affairs laws.
"This has been in place in Victoria for some years and the evidence is that it has been very successful," Mr Bowen said.
"Consumers get quick remedy and importantly future consumers don't have to put up with the terms at all."
Mr Bowen says unfair terms include those which reduce the negotiating power of the consumer, limit legal recourse or allow suppliers to change prices without reference.
"We have contracts where the consumer isn't able to cancel but the supplier is, or there are very heavy penalties for cancelling the contract," he said.
"You get some contracts where the upfront price is fine but then the supplier is able to increase prices as they see fit."
Originally the Federal Government had planned to apply the laws in 2011 but has moved it forward after a COAG agreement in October 2008.
Mr Bowen says regulators will make the case of whether fees or charges are unfair in a relevant tribunal.
"There are operators which come up for public scrutiny quite commonly," he said.
Mr Bowen says the 2010 date has been set to allow the laws to pass through Parliament and to give suppliers a chance to remove unfair contracts terms themselves.
"The law as it is at the moment doesn't provide protection for unfair contract terms," he said.
"We'd be seeking business to look at the spirit of what we're trying to do and get their houses in order before the first of January where possible."
Govt to fast-track new consumer protection laws
Posted Tue Feb 17, 2009 6:45pm AEDTUpdated Tue Feb 17, 2009 6:44pm AEDT
http://www.abc.net.au/news/stories/2009/02/17/2494013.htm
New laws to protect consumers from unfair contracts are being fast-tracked to be in place by 2010.
Consumer Affairs Minister Chris Bowen says the laws are designed to provide greater power to consumers and consumer groups to legally challenge unfair contracts terms.
The new laws apply to standard form contracts and are modelled on existing Victorian Consumer Affairs laws.
"This has been in place in Victoria for some years and the evidence is that it has been very successful," Mr Bowen said.
"Consumers get quick remedy and importantly future consumers don't have to put up with the terms at all."
Mr Bowen says unfair terms include those which reduce the negotiating power of the consumer, limit legal recourse or allow suppliers to change prices without reference.
"We have contracts where the consumer isn't able to cancel but the supplier is, or there are very heavy penalties for cancelling the contract," he said.
"You get some contracts where the upfront price is fine but then the supplier is able to increase prices as they see fit."
Originally the Federal Government had planned to apply the laws in 2011 but has moved it forward after a COAG agreement in October 2008.
Mr Bowen says regulators will make the case of whether fees or charges are unfair in a relevant tribunal.
"There are operators which come up for public scrutiny quite commonly," he said.
Mr Bowen says the 2010 date has been set to allow the laws to pass through Parliament and to give suppliers a chance to remove unfair contracts terms themselves.
"The law as it is at the moment doesn't provide protection for unfair contract terms," he said.
"We'd be seeking business to look at the spirit of what we're trying to do and get their houses in order before the first of January where possible."